Seattle - RealNetworks (NASD: RNWK) announced on Thursday that it will spin off its casual games business, and distribute shares in the newly created company to its shareholders.

The company may also precede the spin with an initial public offering and sale of up to 20% of the shares of the games company.

RealNetworks said the move "will result in two more flexible and focused companies," and "provide the games business an industry-specific currency for future acquisitions and enhance its ability to attract and retain the best talent in the industry."

RealNetworks' games business generated $108.5 million in revenue during 2007, while revenue was $38.1 million for the first quarter of 2008, up 33% year-over-year.

The company said it will make its decision on whether to proceed with an IPO for its games business by the end of the year.

Related Links:
http://investor.realnetworks.com/games

http://www.realarcade.com